Markets at a glance

It's been four weeks now, that the markets ended up in losses. This week, the Sensex plummeted 726.73 points to 14,141.52 points while the Nifty ended the week 225.30 points lower to 4108.05 points.

Global markets dictated volatility owing to the redemption pressure on hedge funds. The rupee depreciated marginally against the dollar, but failed to rev up the information technology and export sector stocks.

What to expect this week
Even though domestic institutional investors have been net buyers in the past week, it is not enough reason for a revival on the bourses. Global markets will continue to dominate the scene, as foreign institutional investors have been on a selling spree.

The fears of unwinding of the yen carry trade too, are mounting once again. In spite of bright long term prospects and good corporate earnings growth, the domestic bourses may remain weak due to further selling. Expect a week of intense volatility in the markets.

Stock to watch

MARUTI UDYOG
Last week's close (Rs)	779.35
Prev week's close (Rs)	809.90
Week's high (Rs)	838.95
Week's low (Rs)	717.50
Last week's ave. daily turnover (Rs cr)	55.18
Prev. week's ave. daily turnover (Rs cr)	67.22
Number of up/down moves	01-Mar

Maruti Udyog is poised to do better this week as its sales volume growth in the domestic market remains strong. The company has been able to withstand competition emerging from the stables of Tata Motors, Hyundai Motors, Mahindra & Mahindra and Fiat.

Besides, the company may lose its domestic market share marginally, but exports are expected to increase sharply over the next few years. In spite of the looming margin crunch, the company has a track record of efficient capacity utilisation, which limits the downside risk for the stock.

Also, weaker steel prices will help the company on the cost side. Further, Maruti has an outlay of investing nearly Rs 9,000 crore to set up its fourth manufacturing facility at Manesar in Haryana, which is expected to go onstream by 2010. At Rs 779.35, the stock trades at 12 times and 10.5 times estimated FY08 and FY09 earnings respectively.